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Peer group effects and educational attainment

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  • Arnott, Richard
  • Rowse, John

Abstract

Given the aims of an educational system, the relationship between inputs and output, a distribution of student ability, and a fixed budget, how should students and expenditures be allocated over classrooms? This paper focuses on peer effects and the determinants of whether streaming or mixing is preferable. The efficient allocation is highly sensitive to the form in which peer group effects enter. This emphasizes the need for flexible functional forms in estimating educational production functions.
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Suggested Citation

  • Arnott, Richard & Rowse, John, 1987. "Peer group effects and educational attainment," Journal of Public Economics, Elsevier, vol. 32(3), pages 287-305, April.
    • Handle: RePEc:eee:pubeco:v:32:y:1987:i:3:p:287-305
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    JEL classification:

    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure
    • L68 - Industrial Organization - - Industry Studies: Manufacturing - - - Appliances; Furniture; Other Consumer Durables

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